phat cat

Moody's Dangerous Aggression

Frozen Tundra, just because the guys at rating agencies don't make the big bucks (maybe they are just not good enough to make the big bucks) and they take their analysis seriously, it doesn't mean they are capable or intelligent by any stretch of imagination. Maybe they are just only qualified to do menial jobs, maybe they are better off go rate electronic product safety or test mineral contents in vitamin pills.

I don't deny that there are too much greed in Wall Street, but isn't what capitalism is based on? Without the fundamental drive to create wealth, we might as well all go back to farming and barter system. What we need is some check and balance to make sure greed doesn't go out of control. Dick Fuld is guilty of his arrogence, but the system created him. Don't think for a minute that the guy who's working at the rating agency didn't want to make the same amount of money as Fuld.

Moody's Dangerous Aggression

It's incredible that people would still rely on these rating agencies for advice on what to buy/sell. These same agencies rated AAA tranches for CDO squared and the same one who downgrades the day after the company is bust. Their function in the market can be summed up as "the one to add fuel to fire", either in bull market or bear market.

Who's rating these rating agencies? Just like who's insuring hte insurance companies, or who's guaranteeing those who handing out those warranties you buy at electonic shops.